The town of Kargil and adjoining areas observed a shutdown Monday to protest against the decision of the Jammu and Kashmir government to set up the permanent headquarters of the newly-created Ladakh division in Leh.

Shops and business establishments are closed, while roads are deserted due to the shutdown called by local leaders in Kargil," officials said.

Cutting across party lines, residents of Kargil marched in thousands on Sunday against the administration's decision to permanently post the divisional commissioner and Inspector General of Police (IGP) offices for the newly created Ladakh division in Leh town.

The people of Kargil are demanding that divisional commissioner and IGP offices function on rotational basis -- in Kargil during summers and in Leh during winters.

The elected leaders of Kargil in panchayats, municipal committees and the Ladakh Autonomous Hill Development Council (Kargil) have threatened to resign en masse if the government does not modify its order.

The government decision to create Ladakh division has led to resentment from other regions of the state like Pir Panjal and the Chenab valley, where leaders have threatened to launch an agitation if similar administrative units for their regions were not created.

The National Conference has already made it an election issue, with its leader Omar Abdullah promising to create new divisions for Pir Panjal and Chenab valley if his party is voted to power in the assembly elections likely to be held later this year.

Governor, Satya Pal Malik today met the All Party Co-ordination Committee members from Kargil district to understand and resolve the concerns of the people of Kargil regarding the newly formed Ladakh Division.